Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Cattle were higher again last week. Negotiated prices in the southern U.S. ranged from $218-$220/cwt. Showlists in the north are short and bids reflected that with sales of $225/cwt. The Choice beef cutout gained last week, averaging $345.65. The weekly estimated harvest was equal to the previous week at 559,000 and 57,000 fewer than the same week last year. Feeder cattle prices have been surging. The August Feeder Cattle contract at the Chicago Mercantile Exchange was $6.50 higher on Monday, closing at $306.85.
The reclosing of the U.S. border to Mexican feeder cattle and news of China lowering retaliatory tariffs on U.S. products to 10% for 90 days seem to be the two main factors causing the increase. U.S. beef is now subject to a 10% retaliation for the U.S. fentanyl tariffs, a 10% reciprocal retaliation tariff, and a 12% tariff under the most-favored-nation agreement, bringing the total tariff for beef sales to China to 32%. March U.S. beef exports were 1% higher than a year ago, while the total for the first quarter was 2.7% lower. March beef exports equated to $466.77 per head of fed cattle harvested.
High Choice and Prime Beef
High Choice and Prime beef breed steers were $1-$3 higher, selling from $202-$225/cwt with reports of some above. Choice steers and heifers ranged from $195-$202/cwt. Holstein steers were steady to $2 higher. High grading Holstein steers brought $185-$199/cwt. Steers with an overnight stand brought up to $199/cwt with a few reports of $203/cwt. Lower grading steers brought $155-$184. Silage-fed, under-finished or heavy dairy breed steers brought $85-$155/cwt. Dairy x Beef steers were steady, bringing $165-$210 with some as high as $217/cwt. Cows were steady to $2 higher. Most cows brought $105-$136/cwt with some to the high $140s. Lower yielding cows brought $65-$105/cwt. Doubtful health and thin cows brought up to $65/cwt.
Dairy breed bull calves were steady to strong, selling from $600-$1,100/head with some heavier, well-managed calves selling to $1,300/head. Dairy breed heifer calves were higher, bringing $200-$600/head with a few to $1,000. Beef and Beef Cross calves were steady, selling from $700-$1,500/head. Light and lower quality calves sold up to $60.
